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Manual Trader document -- understand pips

There are two and only two terms in Manual Trader pricing system. One is price. Price is just the absolute price of a pair, such as 1.3800 for EURUSD. The other one is pip. Pip is used to measure the relative distance of price.

The value of one pip doesn't change with 4 or 5 digits broker

No matter the broker uses 4 (1.3800) or 5 (1.38000) digits quote, the value of one pip is always the same. For most pairs such as EURUSD, AUDCAD, etc, the value of 1 pip is 0.0001. For Japanese Yen based pairs, and for precious metals, such as USDJPY, XAGUSD, XAUUSD, the value of 1 pip is 0.01. For Stock Indices CFDs, such as FTSE (UK100) index, the value of 1 pip may be vary with different brokers because CFDs are not quite standard.

For 4 digits brokers, pip is always integers. For 5 digits brokers, pip can have fraction, such as 1.5 pips.

Don't be confused with pip and MT4 point

MetaTrader uses the term “point” extensively. For example, the spread in strategy tester is defined in points. The value of one point is different with 4 or 5 digits broker. For 4 digits broker, the value of one point is 0.0001 for EURUSD, but for 5 digits broker, the value becomes 0.00001. This is very confusing.

Manual Trader only uses the term pip, never uses point

To be less confusing, Manual Trader only uses the term pip and never uses point. Manual Trader will handle both 4 and 5 digits brokers automatically.